Blockchain technology is the new trending son of technology in the 21st century.
Although it was created by some unknown people with the pseudo name of Satoshi Nakamoto. Today, blockchain technology is considered to be a new branch or a new version of the internet itself.
I think everybody from the world of technology has heard the name of the blockchain and if not you all must have heard the name of the controversial bitcoin technology.
Did you know? The overall market for blockchain is supposed to go to $20 billion by the time we reach 2024.
The blockchain was primarily designed for bitcoin technology to work but as time went by, many other features of the blockchain came to existence.
What is the Blockchain technology?
The blockchain actually allows a whole lot of digital information to be distributed all throughout. Again it does not allow the digital data to get copied. That’s how it behaves like an internet system by itself.
Technically, it has a time-stamped series of large datasets which has a record of anything and everything.
This large record of data is not controlled by a single identity but rather it is controlled by a number of computers.
Now all these data blocks are actually connected to each other through some cryptographic chains.
Hence the name is blockchain where the data is the block and the cryptographic rules holding all the data together in the chain.
Now if you want to pass any information to another person through blockchain then you would have to create a block. This block is verified by thousands of other people.
So this actually creates a very safe trail.
If you want to change something in that trail, then you have to make the alteration in every single block attached to it. So this kind of makes the blockchain kind of very safe and reliable. But is it so?
What is the specialty of Blockchain technology?
The feature in the blockchain technology which makes it unique is the fact that it has no single authority to control it.
It is built on the single principle of democracy.
It is basically a ledger system that is visible to everyone and it is available to everyone as well. All the information in the blockchain technology is transparent and is available to all the people.
Hence, if anything goes wrong in the blockchain then everyone attached to it is held responsible.
This means that instead of one person being accountable for the blockchain, all the individuals are actually responsible for it.
That kind of makes it very cool right? I mean imagine if all the people in the bank are responsible for any theft.
So that would mean that instead of having a couple of security guards in the whole building, all the people who are working in the bank and all the people who are a customer of the bank are the acting security guards.
This just makes the bank a very safe place because if everyone is a security guard, no one would actually think of robbing the bank or making any fraud! But there are some loopholes to it as well!
The loopholes of the Blockchain technology
There is nothing called perfect on this planet! So obviously the great blockchain has also flaws in it. Some of these issues and limitations are discussed here.
1. The complexity of the cryptographic codes holding all the blocks together is a problem in itself.
One has to be very good at coding and stuff to be able to manage the blockchain technology.
Although there are many courses available for learning cryptocurrencies and coding. But always there is the issue that this is a not a simple application and we all love things that are simple enough.
2. There has to a very big amount of people or organizations attached to the blockchain.
Well, only then the chain in the ‘blockchain’ is going to be stronger!
If there is not a proper huge network to support the blockchain, then it will not work properly and there is obviously not going to be much profit.
In this case, the blockchain technology basically works like that of the bank. If there are fewer amounts of people putting their money in the bank, then it would not work.
3. There are certain limitations that cannot be avoided in any place.
Human error is one such issue. There is always some amount of human error in everything that we do.
Now, this error is very crucial for the blockchain technology.
If at the beginning of the chain a piece of faulty information is fed to the system, then that fault continues in the whole chain and can cause big trouble as the chain keeps on growing.
So the blockchain needs to be scrutinized in every detail so that such faults can be avoided.
4. ‘51 percent attack’ is a very essential problem in the blockchain.
The problem is if more than half of the computers which are holding the nodes of the blockchain are made to feed a piece of false information then that false information eventually becomes the truth in the blockchain technology.
This is one of the greatest issues in the blockchain which requires attention all the time.
If someone gets hold of the maximum number of computers holding those nodes then that person can literally become in control of the information that is channeling through the blockchain.
5. The fact that everything is transparent in the blockchain is a problem in itself.
At one point it is a good thing but imagine once if you have put any personal information on the blockchain it is going to be there always.
This is actually against many laws regarding patented technology but in blockchain even patented technology is available to everyone.
So you have to be very careful with your personal information in the blockchain.
Everything comes in black and white. So does the blockchain technology.
The blockchain is actually a very good technology with a lot of potentials but at the same time, it has lots of flaws in it.
If these limitations are answered properly then the blockchain can and will become one of the greatest technological inventions of the 21st century.
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I am the marketing manager at Phoneier. At Phoneier, we curate everything around mobile phones and mobile applications, it is one place where you will where you can find solutions for every phone problem.